All Forum Posts by: Cason Acor

Why can’t the person buying your sister’s business just assume the lease? Is the lease in your sister’s personal name, or the business?

You can of course ask for anything you want. But if I was a seller, I would not agree to that contingency. Nor as a tenant, especially being a large hospital network, would I renew a lease with that much time left. Way too many things can happen in 3.5 years and plans always change.

I would call a couple appraisers in the area and ask their opinions. Otherwise it might just be worth what you're willing to pay for it. A $400k increase in 19 years doesn't sound unreasonable to me.

Without additional information, this just sounds like an initial lender deposit. Very common upon executing a term sheet. 

I’ve been the broker in this scenario with regards to referrals. My solution might be different than others, but I’ll cap a referral deadline at twelve months. Meaning any deals that get done with two people I bring together within the first twelve months, I’ll take a referral fee. Beyond that, people have obviously cultivated the relationship further on their own. As much as I would love to get referral fees in perpetuity, I don’t think it’s fair. 

The numbers you provided come out to a 5% cap rate. Depending on the deal, that could be reasonable. You need to consider tenant profile, credit, operating history, remaining lease length, escalations, how the rent compares to the rest of the market, etc. 

If it’s a national credit tenant in a good location, with a lot of time left in the lease, than a 5 cap is definitely possible. 

Usually a tenant with a national operation and high credit rating. It’s an indication that the tenant is financially strong and unlikely to cause non-payment issues for the landlord. 

Never heard of CCA. Just CCIM and SIOR. 

I agree with what everyone else has already said. Additionally, you could try and get a hard money loan in order to close. But then you might be digging yourself into a bigger hole. Do you not have any options in your purchase agreement to extend the contract?

@Jeff Stein Anytime!